Caterpillar Inc. (NYSE:CAT) stock rose 0.47% (As on August 3, 11:42:03 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 22 warned of a bigger drop in demand for its excavators in property crisis-hit China, piling on more pain on the industrial bellwether grappling with supply-chain disruptions. Operating profit margin was 13.6% for the second quarter of 2022, compared with 13.9% for the second quarter of 2021. For the first half of 2022, enterprise operating cash flow was $2.5 billion. In the quarter, the company repurchased $1.1 billion of Caterpillar common stock and paid dividends of $0.6 billion. The company ended the period with $6.0 billion of enterprise cash.

CAT in the second quarter of FY 22 has reported the adjusted earnings per share of $3.18, beating the analysts’ estimates for the adjusted earnings per share of $3, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 11 percent to $14.25 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $14.3 billion.

Moreover, Machinery and Energy & Transportation (ME&T) sales rose 11% year over year to $13.5 billion in the quarter under review. Construction Industries’ sales were up 7% year over year to $6 billion on favorable price realization, somewhat offset by unfavorable currency impacts. Sales volume dipped slightly year on year as lower sales of equipment to end users were mostly offset by higher sales of aftermarket parts. Sales growth in other Latin America and North America helped offset lower sales in EAME and Asia Pacific. Sales at Resource Industries gained 16% year over year to around $2.96 billion on higher sales volume, backed by higher end-user demand for aftermarket parts and improved price realization. Sales were up in Asia Pacific and North America, which negated year-on-year declines witnessed in EAME and Latin America. Sales of the Energy & Transportation segment in the quarter were around $5.7 billion, reflecting growth of 15% from the prior-year quarter as sales were up in all applications.

Further, the ME&T segment reported an operating profit of $1,804 million, which reflected an improvement of 9% year over year. The Construction Industries segment witnessed a 4% decline in operating profit to $989 million. Favorable price realization was offset by higher manufacturing costs and lower sales volumes. The Resource Industries segment’s operating profit improved 2% year over year to $355 million in the second quarter.